Question

The difference of the compound interest and simple interest on a certain sum money for 3 years at the rate of 10% p.a. is Rs.93. Find the sum.​

Answer 1

Answer:

₹ 3,000

Explanation:

Given the difference between compound interest and simple interest is 93

Time = 3 yrs

Rate of interest = 10%

Difference = 93

Let the principle be 'p'

$P[(1+i)^n-1] - p * i * t = 93$

$P[(1 + 0.1)^3-1] - p * \frac{10}{100} * 3 = 93$

$P[(1.1)^3-1] - p * 0.3 = 93$

$P[(1.331-1)] - 0.3p = 93$

$0.331p - 0.3p = 93$

$0.031p = 93$

$p = \frac{93}{0.031}$

$P = 3,000$

Hence the sum is ₹ 3,000